- Analyst claims XRP control by insiders fuels constant selling pressure.
- Ripple’s lost market edge leaves room for rising crypto competitors.
- Technical flaws and mistrust overshadow Ripple’s recent regulatory victories.
According to blockchain analyst ZachXBT, Ripple’s standing within the crypto community remains strained despite recent legal successes. The criticism was renewed after trader Ansem triggered a discussion by comparing Chainlink and Ripple with references to the distribution and positioning of XRP.
ZachXBT asserted that XRP is highly concentrated in the hands of insiders and early investors, a concentration that drives persistent selling pressure. This, he explained, prevents the token from achieving a natural market valuation and continues to frustrate retail holders.
In addition to distribution concerns, Ripple’s past partnership announcements have been treated with suspicion. The analyst quoted false advertising of adoption via banking partnerships and payment corridors that turned out to be ineffective in terms of actual usage. These overstatements have eroded trust in Ripple’s public messaging.
Also Read: Lawyer Slams Trending Speculation About Ripple Lawsuit Continuation and XRP Price Outlook
Eroding Advantage and Technical Concerns
ZachXBT noted Ripple has lost its early dominance in the cross-border payments sector. While competitors advanced their technology and market presence, Ripple’s focus shifted toward lengthy legal battles, leaving gaps in innovation and market execution.
Technical weaknesseshave added to the problem. Vulnerabilities such as partial payment exploits have raised concerns over network security and reliability, discouraging some developers and institutions from fully integrating Ripple’s technology.
A lack of robust analytics infrastructure also hinders transparency. Without accurate data on how XRP is used in real-world payments versus speculative trading, evaluating its actual adoption remains challenging.
Regulatory Gains Contrast With Persistent Distrust
Ripple’s settlement with the SEC has improved its regulatory outlook, boosting the chances of an XRP ETF approval to nearly 90 percent. Applications from prominent asset managers including Grayscale, Franklin Templeton, 21Shares, and ProShares signal strong institutional interest.
However, retail sentiment remains divided as Ripple’s $200 million acquisition of Canadian payments platform Rail aims to enhance its RLUSD stablecoin for enterprise payments, though critics doubt it addresses deep-rooted tokenomics and governance issues.
The gap between regulatory progress and ongoing user skepticism underscores that insider control, technical flaws, and transparency challenges continue to weigh on Ripple’s broader acceptance.
Also Read: South Koreans Dump Big Tech for Stablecoin Stocks After Trump Signs GENIUS Act
